Lawyers Seek Record $6 Billion Fee from Tesla over Elon Musk’s Pay Package
Legal Battle Unfolds
In a stunning turn of events, the legal team that overturned Elon Musk’s extravagant $56 billion compensation package is now demanding an unprecedented $6 billion fee, to be paid in Tesla stock. The lawyers justified this astronomical request as a justifiable hourly rate of $288,888.
Elon Musk’s Reaction
Elon Musk swiftly condemned the fee request as “criminal,” accusing the legal team of causing harm to Tesla. In a fiery post on his X platform, Musk expressed outrage over the astronomical fee demanded by the lawyers.
Legal Rationale
The legal battle originated from a lawsuit filed by shareholder Richard Tornetta in 2018, challenging Musk’s pay package. A Delaware judge ruled in January to nullify the package, leading to the current fee dispute.
Benefit to Tesla
The legal team argues that Tesla benefited from the voiding of Musk’s pay package, resulting in the return of 266 million shares to the company. They propose that the fee payment should come directly from these shares, which would also be tax-deductible for Tesla.
Unprecedented Fee Demand
Judge Kathaleen McCormick expressed shock at the scale of Musk’s pay package and will deliberate on the legality of the $6 billion fee request. This demand, though monumental, aligns with the legal team’s efforts and risks undertaken throughout the trial.
Expanding Legal Horizons
As legal battles in shareholder cases reach unprecedented heights, the demand for exorbitant legal fees is not unique to this case. Similar high-stake fee disputes have emerged in other corporate lawsuits, pushing the boundaries of legal compensation.
Musk’s Pay Package Details
Musk’s pay package comprised stock options with stringent restrictions. The legal team is pushing to receive unrestricted Tesla stock as part of their fee, aiming to maximize the benefit from their successful intervention.
Behind the Scenes
The legal team, consisting of three prominent law firms, remains steadfast in their pursuit of the record fee. Bernstein Litowitz Berger & Grossmann, Friedman Oster & Tejtel, and Andrews & Springer are at the forefront of this legal battle, vying for their share of the staggering compensation.
